Elektrobit Group Oyj - JOT AUTOMATION GROUP PLC. ADJUSTS ITS OPERATIONS AND STARTS PERSONNEL NEGOTIATIONS. INFORMATION ON FINANCIAL FIGURES 2001 AND THE OUTLOOK FOR THE FIRST QUARTER 2002
February 11, 2002
JOT AUTOMATION GROUP PLC. ADJUSTS ITS OPERATIONS AND STARTS PERSONNEL NEGOTIATIONS. INFORMATION ON FINANCIAL FIGURES 2001 AND THE OUTLOOK FOR THE FIRST QUARTER 2002
2001 was economically a difficult year for the JOT Automation Group. The fall in net sales, which began in the last quarter of 2000, continued throughout 2001. The net sales for October-December was 16.1 (24.4) million euros. During the last quarter the operating loss was 3.6 (2.2) million euros.
The net sales of JOT Automation Group in the year 2001 fell 45.7 per cent and was 76.1 (140.1) million euros, which corresponded with the previous estimates given by the company. The operat-ing loss was 15.8 million euros, whereas the operating profit in the previous year was 14.1 million euros, in other words -20.7 (10.0) per cent of net sales.
During the year 2001 adjustment measures were taken which have proven to be insufficient in the current market situation. The short-term market outlook is still uncertain. The net sales for the first quarter of 2002 will remain low. The result will be further worsened by one time items arising from adjustment measures and it is estimated that the result will be lower than in the last quarter of 2001. During the accounting period 2002 the company will concentrate on its main business, the significant improvement of its profitability and ensuring the sufficiency of financing.
Adjustment measures to make operations more efficient and improve profitability
JOT Automation Group Plc. will adjust its operations to meet the current level of demand. The ob-jective of the actions to be implemented is the significant improvement in the profitability without, however, endangering delivery and service readiness. The total objective for the measures is 700,000 euros per month, at a minimum. The result of these measures is expected to be realized mainly during the second quarter of the year.
The adjustment measures will address all the Group's operations. Amongst other actions produc-tion in Finland and the USA will be reorganized and the structure of the sales network will be re-vised to improve cost-effectiveness. JOT Automation will make more effi-cient of its network that serves international customers.
As a part of the adjustment measures JOT Automation will reduce its personnel in the Group's domestic and foreign units by about 120 persons. A proposal for personnel negotiations was given at 8.00 a.m. today concerning the Group's Oulunsalo, Salo and Vantaa units. The personnel nego-tiations do not concern the assembly and component manufacturing (CMS) business units. The negotiations will concern all the personnel groups. In Finland the negotiations will affect about 80 persons. Personnel abroad will be reduced by approximately 40 persons.
The amount of personnel in JOT Automation Group was 588 persons at the end of the year 2001, of whom 303 were in Finnish units and 285 abroad.
JOT Automation will concentrate on the development of its main business activities
The company will concentrate on the development of its main business activities and the signifi-cant improvement of its profitability, as well as ensuring a sufficiency of financing. The pre-study concerning the automation systems for the manufacture of photo-optic components has been completed and potential future investment decisions relating to it have been postponed.
In Oulunsalo February 11, 2002
JOT Automation Group Plc.
Board of Directors
